At the time, I couldn't believe it...
In June 2011, I wrote to readers that we were on a winning streak that put us "halfway to DiMaggio."
In 1941, one of baseball's mythic figures, Joe DiMaggio, set one of the greatest records in sports history. He got a hit in 56 straight ballgames.
Even casual sports fans know this is an incredible feat. Most great baseball players never string together hit streaks even half that long. But when you look at the probabilities DiMaggio faced, you realize how amazing this accomplishment is.
Forget about the psychological pressure of hitting in that many games in a row, the simple probability of it happening is nearly impossible. Here's why...
Over the course of his career, DiMaggio had at least one hit in 79% of his games. To calculate the probability of any streak, multiply DiMaggio's 0.79 that many times. For example, the probability of him hitting in five straight games would be 0.79 x 0.79 x 0.79 x 0.79 x 0.79 = 0.31. So at any point in his career, he had a 31% shot at a five-game streak. The odds for a 10-game streak were 9.4%. And so on.
The probability of getting a hit during 56 games in a row works out to be 1.8 in 1 million. To put this into perspective, DiMaggio was six times more likely to get killed riding a train than to get a hit in 56 straight games.
What does all this have to do with me? Well, at the time, I helped my Retirement Trader subscribers lock up 28 winners in a row (halfway to DiMaggio's 56).
The odds are against us... As I've written before, I'd be happy to get "on base" just 60% of the time. And if we had that win rate, the probability of us closing 28 winners in a row would also be less than two in a million.
The streak did eventually end...
It lasted nearly 43 months. And it stretched to 136 consecutive winning trades.
And now, we're well on our way to beating our previous winning streak...
Just last month, we closed out our 132nd consecutive winner.
It hasn't been easy to do, and my team and I are working hard to keep the streak going for as long as possible – especially since investors are hurting. Inflation is raging, stocks have been hammered, the Federal Reserve is raising rates, and no one knows whether to buy the dip or move to cash.
Here's the thing about the strategy I've used to keep my subscribers on this incredible winning streak...
If things continue to get worse, you can keep using this strategy to protect and grow your money with outsized cash payouts.
But if the fears of a recession, hyperinflation, and an all-out market crash subside, you'll still be able to use this strategy to collect hundreds, or even thousands of dollars in instant income each month...
It's a win-win.
You don't have to worry where the market will go from here. In a just-released presentation, I show you how this strategy makes money in any market and how you can use it in your own portfolio.
Now, here are some of the things on your minds this week... Keep sending your comments, questions, and topic suggestions to [email protected]. We read every e-mail.
Q: I'm not putting fruit in my coffee. – L.T.
A: L.T., when I got your e-mail, I double-checked last Thursday's issue to see if I'd recommended fruit in coffee... I hadn't.
In seriousness, I do understand L.T.'s frustration. I knew that telling folks to quit using sugar and sugar substitutes would be controversial. Many of you wrote in about this issue, in which I'd warned about the dangers of natural sugar and alternative sweeteners. I do recommend coffee... so what are folks to do?
Personally, instead of using sugar in my coffee, I put in a splash of real half-and-half to give it some sweetness. Sometimes I'll even add in a dash of cinnamon.
But if you're attached to a sweeter-tasting coffee, I understand that may not be enough. Instead, try gradually cutting down. Each week, put in a little less than you did the week before. One of my researchers did this with her morning tea... After a couple months, she said she actually enjoyed the flavor of real tea. Years later, she says adding sugar just makes it too sweet.
You can also try mindful drinking. We've said before that being "mindful" – staying aware of what foods and drinks you put into your body and why you are choosing to eat in a given moment – promotes better digestion, keeps you feeling satisfied for longer, and helps you make better decisions about what to eat. And a 2017 study found this works for reducing the sugar and sweeteners in your coffee as well...
The study, published in the Journal of Health Psychology, found that over a six-month period, people who used mindfulness were even more likely to stick to sweetener-free coffee (and report enjoyment of it) than those who used the gradual-reduction method. For the mindfulness group, researchers asked folks to take the time to experience every aspect of drinking coffee – like the aroma, the texture, the movement of the coffee in the cup, and even the steam rising from it. Then they had to reflect on their feelings after drinking the coffee. (This mindful-drinking method also worked a bit better than just going cold turkey.)
So instead of grabbing a coffee to go and drink it while you rush to work, take the time to really enjoy your brew.
Here's the thing... I know lots of folks won't want to cut out their sweeteners or don't have time to stop and savor their morning coffee. We all have weaknesses for foods and drinks that aren't exactly healthy. So if you're someone who wants to keep putting sugar or sweeteners in your coffee or tea, just make sure you understand the risks first and use the least amount that works for you.
As I've said for years, everything in moderation.
Q: Is there any way that an unemployed retired 84-year-old person can qualify for owning a 401(k) or any other tax-savings plan. I await your response. – L.V.
A: If you want to invest in a 401(k), one of the main requirements is having earned income. Recall that a 401(k) is an employer-sponsored retirement plan which is meant to use contributions either from the employer, the employee's pay, or some combination of both. Another important point is age and required minimum distributions ("RMDs").
Most retirement savings plans, like traditional IRAs and 401(k)s, force you to receive some amount of money from your account each year once you reach age 70-and-a-half (or age 72, depending on your birthday). The exception is a Roth IRA, which doesn't have an RMD.
Tax-savings plans are mostly meant to help you save on taxes during the years when you're earning the most money, not as much post-retirement. If taxes are your biggest concern, think about where you're living. Some states are extremely friendly to retirees, like Tennessee, which doesn't tax any retirement income at the state level... while other states, like California, impose a tax on most of your retirement earnings. So if you're able, it might make sense to rethink where you live. (We have a whole report on how to find the best state to retire in. You can learn more about it here.)
I'm prohibited from giving individuals investment advice, and I don't know your exact situation. But if you're looking for tax-friendly investments and aren't planning to relocate, you might also consider municipal bonds or Treasurys. They offer tax exemptions and avoid the risk of stocks.
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Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
September 9, 2022